Thursday, June 10, 2010

BP (NYSE:BP) Shareholders Fleeing Company

The growing uncertainty surrounding BP (NYSE:BP) has shareholders getter more nervous, as yesterday alone the company lost $82 billion in value.

Much of this is from speculators and traders shorting the stock, but even so, it's based upon a future for BP no one can predict, and that is what is primarily driving the share price down.

More worrisome for BP is the departure of shareholders, who they may have trouble getting back again for some time into the future, not knowing how far BP will fall, and if they will even survive as they are.

Early in today's session the stock plunged another 11 percent to land at a 13-year low in London.

At this time the estimates cost of the cleanup and liabilities are from $20 billion to $40 billion.

All of that is driving a growing number of investors away from the oil giant.

46 comments:

Anonymous
said...

Idiotic article..The person obviously has no clue as to the net worth of BP or its global operations and fails to understand the cash reserves BP has and the future projects or its global revenue. In fact this person knows full well the financial health of BP but wants to drive this down with fear. Just look at the data for yesterday where it was shorted and now its up by over 11%. No one should read thise shit, especially when its been written by an uneducated blogger!

They lost $82bil in market value yesterday?? Are you sure?? Lets see, the stock was down close to $5/share and they have roughly 3bil shares O/S which makes the 'hit'abot $15bil. I think your loss figure (or you) might be a little bit 'high'

I am so sick of google finance linking to these retarded blogs. last one said BP was going bankrupt, this one essentially says the same thing that they lost "82 bn in market value". Google has the worst user feedback system ever and there are so many bugs on their site. For about 3 weeks banco santander had a market cap of 4.11 trillion. and they would post articles on the main page that were a day old.

This is more then true. BP has a real possibility of bankruptcy, government and political penalties and even a possible multi-government bailout (but how is that possible given the entire world is in a recession). Sure with fiat currency we can always print more, surging us into higher inflation. We would be in a recession worse then the Great Depression if it was not for the manipulation of currency by the US Federal Reserve.

No wonder the US is in such a financial mess if people listen to muppets like this. At least it shows it's not just the American politicians who are talking out of their backsides. Perhaps they might wake up and smell the coffee when you are driven back to the Middle East for your oil

BP in bankruptcy - get real. This isn't a bank we are talking about here. it's a company with real assets and remember this is the old Amoco, Arco and Sohio companies - bankruptcy = loads more US citizens on the dole queues, I don't think even a clown like Obama wants that

Surge in price appears to be a temp thing. Confidence in this Co. is lost. Hurricane season will diminish confidence further when first alerts are issued and containment efforts are postponed. Expect an Oct-Nov finish of relief wells, and 30-40 days of unchecked flow from alert delays. Costs will be big, and chap 11 may make more sense financially than 4-5 yrs lost profit.

What a moron. At the WORST, BP will sink to 25... when it does, I'm buying a crapload of it. I don't care what anybody says about supporting a company that doesn't care about safety, environment, etc. In the esteemed words of Kevin O'Leary, "Show me the MONEY". Isn't that what capitalism is all about? I'm a capitalist, not an environmentalist.

BP actually has 18.8 billion shares, in which only 3.3 billion are publicly traded. So the $82 billion lost in value divided by 18.8 billion is only $4.36 per share drop, which is close to the drop in share value yesterday. The author misrepresents information to us.

We are seeing a classic bear raid on BP (see Reminisence of stock operator for details of how they did it in the old days.)

The animal is wounded (BP), the bear raiders go short (which is the correct thing for them to do) then go on to start, spread and fuel rumours to get the pensioners and other weak owners to sell out.

At the peak of the selling frenzy they cover their shorts.

BP is a classic. I love it. BPs dividend last year of over $10 bn will easily cover fines ($1bn), costs ($3bn), compensation ($4bn) and clean up costs ($2bn).

BP will cut its dividend. There is no way it can take the headlines. BP pays shareholders $12 billion having threatened the livihoods of thousands, failed to pay 10,000 compensation claims, blah, blah.

Cameron and Clegg will lobby for a big (headline fine) of $1bn, BUT WITH NO structural remedies.

Oil prices will rise as US deepwater production feels the effect of the ban (and spike if the ban is extended.)

I will buy BP once it is clear that the well is under control (these are not the times to be buying uncertainty.) The litigation I can live with once the dividend is resumed, long term holders (yes: buy and holders, they still exist) should see 15% (say 9% yield - assuming one can get in around $36 for the ADR and growing at 6%,) you can be one year closer to retirement

"Nervous and defensive BP Shills"? Selling is easy if you get nervous. Easier than shilling about how the company lost $82bn in a day, for sure. BP is a buy-and-sit-back company, there's no need for nervousness here. I sold at 550p for a 25% gain and plenty more in dividends and I bought today at 370p, with money I can afford to lose. What need do I or anyone else have to be defensive? Nobody owning BP needs to be defensive or nervous. You are reading things which have not been written!

bankruptancy is far fetched in my opinion...however it will take quite a while for BP to clean up this mess and costs will be substantial even for a company of this size. The only concern I have in the near future is the hurricane season. A decent one will turn this disaster into a catastrophy and ramp up costs dramatically.

The content of the vast majority of these blogs is borderline to the intelligence of an amoeba.

BP will not go bankrupt.

The deep pockets of cash reserves, annual cashflow generation (not including cash streams to flow from a significant quantity of very high ROI projects that are to go live in FY 2011 - 2014)and the BP credit rating ability to obtain additional cash if needed (which will not actually be necessary)is a solid foundation that will undoubtedly enable BP to ride this storm out.

My portfolio is up approx 1067% in the last 2 years.

I have just bought a huge position on BP.

It is cheap stock and in approx 18months I will have made approx 75%++ on this simpleton trade.

idiot... my dog can do better research than you. it's cute how a few of you bloggers are able to take advantage of Google's faulty algorithm. I guess Google isn't as all-powerful as I always thought they were. don't worry though, you can always become my janitor.

to the dude writing about a hurricane. a hurricane will only help BP as it will create a gray legal area for who cleans up what. analogy...think of a guy who hits a car that hasn't been fixed since its last accident.

Each shareholder that sells does so to another entity. Shareholders can not be running away because for each one that leaves there is another to replace him / her. Unless the company is buying back it's own shares.

This article is only written to scare people to sell low, so that others can get in cheaply.

Too many whiners freaking out about a simple blog post. Ya'll should just chill out. If the company is oversold, then buy now, but please... stop acting like fiesty little 12 year olds and saying the original comments are from a moron or a little bitch.

Damn... the internet really magnifies and displays the bottom 10% of human nature.

Can any one just start a blog, write any thing they want about a stock and that appears on the right hand news panel of google finance, is it that simple?, the google finance news link got me to this blog, I feel 82Billion can not be true